Reit ETF - Accumulating - Bogleheads.org (2024)

Hello,

I am European Investor, looking to replace the current ETF I have on my portfolio.
Currently I have 'db x-trackers FTSE EPRA/NAR Dev Eur RE UCITS ETF', which replicates the Index:
EPRA/NAREIT Developed Europe.

I don't have any particular reason to invest on 'Developed Europe'. The same way I hold a World Stocks ETF, I must hold a Global Reit ETF. Something replicating index FTSE EPRA/NAREIT Global.

So, the question is, where can I find a accumulating (non distributing) Global REIT ETF?

Thanks for all your help.

I don't know about Europe, but in the us reits must distribute 90% of dividends. So I don't know whether an "accumulating" reit exists. .FromInvestopedia:
"REITs are required by law to maintain dividend payout ratios of at least 90%, making them a favorite for income-seeking investors. REITs can deduct these dividends and avoid most or all tax liabilities, though investors still pay income tax on the payouts they receive."

Read more: Real Estate Investment Trust - REIT Definition | Investopedia http://www.investopedia.com/terms/r/rei ... z4VYtKSL1J
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From reit.com

The majority of REIT laws around the world mirror the U.S. approach to REIT-based real estate investment.

Thank you mhalley.

In your opinion, makes any sense to invest on a restricted ETF, like 'Developed Europe' (the only accumulating ETF I found)?
Since is not possible to find a global Accumulating REIT, shouldn't be better to alocate the REIT money on another asset?

Thanks

mhalley wrote:I don't know about Europe, but in the us reits must distribute 90% of dividends. So I don't know whether an "accumulating" reit exists. .FromInvestopedia:
"REITs are required by law to maintain dividend payout ratios of at least 90%, making them a favorite for income-seeking investors. REITs can deduct these dividends and avoid most or all tax liabilities, though investors still pay income tax on the payouts they receive."

Read more: Real Estate Investment Trust - REIT Definition | Investopedia http://www.investopedia.com/terms/r/rei ... z4VYtKSL1J
Follow us: Investopedia on Facebook

From reit.com

The majority of REIT laws around the world mirror the U.S. approach to REIT-based real estate investment.

It's a European funds issue.

The underlying REITs are still meeting the law *in countries that have REITs* (not all do).

The fund itself (next level up) is either Distributing (pays out all income from investments) or Accumulating (does not).

THe issue arises because European investors, depending on country, only pay capital gains when they sell the units, they are not flowed through to the holders' taxes every year when the fund realizes investments.

Nuno wrote:Hello,

I am European Investor, looking to replace the current ETF I have on my portfolio.
Currently I have 'db x-trackers FTSE EPRA/NAR Dev Eur RE UCITS ETF', which replicates the Index:
EPRA/NAREIT Developed Europe.

I don't have any particular reason to invest on 'Developed Europe'. The same way I hold a World Stocks ETF, I must hold a Global Reit ETF. Something replicating index FTSE EPRA/NAREIT Global.

So, the question is, where can I find a accumulating (non distributing) Global REIT ETF?

Thanks for all your help.

There are various lists eg of Dublin listed ETFs out there.

Check Ishares. They don't have a global Real Estate ETF?

Hello,

There are a couple of Global Reit ETFs here in Europe:
SPDR Dow Jones Global Real Estate UCITS ETF
or
Think Global Real Estate UCITS ETF

But none accumulating.

I have 3 options:

1) Invest on non-global Reit ETF: db x-trackers FTSE EPRA/NAR Dev Eur RE UCITS ETF :
Pro: Accumulating ETF
Con: Non Global, limited to developed Europe
2) Invest on global Reit ETF
Pro: Global ETF
Con: Distributing dividends, less tax efficient
3) Allocate the money to a different asset
Pro: Follow the rules: tax efficiency and avoid niche ETFs (European Reit is a niche to me)
Con: Lose the diversification REIT investment can give.

Not sure, what option to take....

Any suggestion?

Thanks

How about this:

https://www.ishares.com/uk/individual/e ... s-etf-fund

TER is 0.64% which is high.

Why not https://www.ishares.com/uk/individual/e ... s-etf-fund
Same ETF, Acc but not hedget. TER is 0.59% but that is too high for me.

There is Amundi Global REIT ETF Acc, but it is Luxembourg domicile.
https://www.justetf.com/uk/etf-profile. ... 1437018838
TER is just 0.24%

Good point on the cheaper non-hedged variant of the iShares ETF.

Besides TER and domicile, the main difference between the iShares ans Amundi offerings seems to be that the iShares ETF invests only in REITs with high enough dividend yield, whereas the Amundi one does not seem to apply any screens like that. Is anyone aware of how these two approaches have performed in the past, i.e., is there evidence supporting the idea that high yield REITs would be a better/worse investment than those with a lower yield?